Bitcoin (BTC) is currently showing positive momentum and the cryptocurrency is experiencing a significant rally so far in January, reaching $23,000, up 40% in value. This marks the biggest gain for Bitcoin since October 2021.
Claim: Bitcoin can accelerate to $ 46 thousand?
The recent price rally has led analysts to focus on higher valuations last seen in mid-2022, while also expecting more gains based on the sentiment of traditional risk assets. According to Game of Trades data-driven investment research, Bitcoin is on a big breakout on its 1-year chart with the possibility of reaching $46,100 sooner than expected after breaking the initial resistance levels at $25,000 and $32,000.
“BTC started its racing engine after a big breakout. The $46,000 comes sooner than many investors think.”
Bitcoin is exploding. Source: Trading Game
Despite ongoing concerns about the consequences of crypto exchange FTX’s bankruptcy, the recovery is impressive considering it has passed critical resistance levels.
While a rally to $25,000 is possible, it may be due to traditional risk assets led by tech companies that have re-founded their footing as recession concerns eased in the last two trading days and the Fed’s less strength. Speculators are confident that the Fed will raise interest rates by only 25 basis points on February 1.
Bitcoin price analysis
Interestingly, crypto trading expert Michael van de Poppe noted on January 24 that BTC is facing significant resistance at $23,100 and could test $22,300 if the asset continues to make lower lows.
“Bitcoin failed to break the critical resistance at $23.1k. If we keep making LHs, we’ll probably test and scan $22,300 before continuing. It offers some serious buying opportunities.”
Bitcoin critical resistance. Source: Michael van de Poppe
Currently, Bitcoin is changing hands at $22,856, up 0.64% in the last 24 hours and 7.58% in the last seven days. Currently, the total market cap of BTC is currently $440.4 billion.
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